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Oman Investment Authority's Stellar Financial Performance in 2024

The Oman Investment Authority (OIA), the sovereign wealth fund of the Sultanate of Oman, has reported outstanding financial results for the year 2024. Closing the year with a substantial $53 billion in assets under management, the OIA achieved a remarkable net profit of $4.12 billion. This financial success underscores OIA's pivotal role in supporting Oman’s economy and reinforcing its growing fiscal importance.

Oman Investment Authority has been recognized among the top ten sovereign wealth funds globally based on their five-year annualized returns, as highlighted in a report by Global SWF. The funds are strategically deployed across a varied portfolio that spans over 50 countries, with a keen focus on sectors primed for future growth.

Strategic Investments to Bolster Oman's Economy

The OIA operates through three distinct verticals: the National Development Fund (NDF), the Future Generations Fund (FGF), and the Future Fund Oman (FFO). The diversity in investment strategy is a deliberate move to manage risk while aligning with the priorities of Oman Vision 2040. Notably, the OIA allocated $4.9 billion in 2024 towards various domestic projects, exceeding its initial target of $4.4 billion. The energy sector received a significant portion of this investment, accounting for 68% of total commitments. This included financial backing for the Duqm Refinery and the establishment of 500 MW solar plants, illustrating a firm commitment to both traditional and renewable energy resources.

Other sectors benefitting from the OIA’s investments include logistics, tourism, mining, and telecommunications, with capital funding initiatives like the Asyad Container Terminal and the reopening of copper mines in Oman.

Expanding Global Outreach and Innovation

Under the Future Generations Fund (FGF), Oman Investment broadened its international exposure by acquiring stakes in 13 newly established funds targeting innovative sectors such as artificial intelligence, healthcare, fintech, and energy transition. The OIA's early investment in xAI exemplifies its approach to harnessing global innovation that holds relevance for Oman's economy.

Initiated in January 2024, the Future Fund Oman was designed to draw foreign investments while promoting local enterprises. To this end, they committed $865 million to projects like the Sohar PolySilicon plant, which aims to be the largest of its kind outside of China. Additionally, partnerships with IDG Capital and ewpartners are paving the way for advancements in ICT, renewables, electric vehicle supply chains, and agritech.

Financial Health and Private Sector Empowerment

The OIA reported substantial repayments of $4.7 billion from its portfolio companies, which included a significant prepayment of $1.4 billion from the state energy group OQ. Furthermore, sovereign guarantees have decreased to $4.7 billion, nearly half of the levels observed in 2023. The OIA divested six assets, exceeding its plans, which raised fresh capital and fostered local equity participation. A prime example is the 25% IPO of OQ Exploration and Production, demonstrating efforts to enhance the private sector while attracting strategic financial partnerships.

Supporting Local Startups and Global Engagement

OIA's commitment extends to supporting entrepreneurship and local start-ups through financial backing, accelerator programs, and targeted procurement initiatives. In 2024, nearly 20% of its supply chain expenditure was directed toward small and medium enterprises (SMEs), further solidified by a protective structure and investments exceeding $28 million.

Recognizing the growing importance of cooperation, OIA also hosted the largest assembly of sovereign wealth funds globally in Muscat, which contributed to enhanced disclosure practices and earned commendations from the World Bank, supporting Oman's return to an investment-grade status.

Despite facing challenges from energy market fluctuations and geopolitical uncertainties, the OIA is determined to scale its investments in renewable energy, digital infrastructure, and vital minerals while strategically decreasing its reliance on hydrocarbons and divesting from non-essential assets. The firm aims to expand co-investment ventures to accelerate knowledge transfer into Omani startups.

Conclusion
With strong outcomes in 2024 and access to deeper capital markets, the Oman Investment Authority is positioned to play a crucial role in stabilizing Oman’s public finance landscape. Investments geared toward technological advancement and sustainable projects showcase OIA's adaptability in the face of a rapidly changing global economy.

For further details, the 2024 Annual Report can be accessed via OIA's official website.